War chest: Saudis set for global sports power grab
afr.comDubai | London | Saudi Arabia plans to launch a multibillion-dollar investment company to expand its sports interests following its power grab in golf and success in English soccer, according to two people familiar with the matter.
The sports group, which will be part of the kingdom’s sovereign wealth fund, will have a war chest to fund its expansion, according to one of the people, in a sign that Riyadh is committed to making further acquisitions, investments and joint ventures in football, tennis and other sports.
Saudi-backed LIV golf spent billions to lure players such as Cameron Smith. Getty
The $US650 billion ($975 billion) Public Investment Fund (PIF) has made a string of sports investments in recent years, flexing its financial might in a sector disrupted by the coronavirus pandemic.
The drive has attracted criticism of Saudi Arabia’s human rights record and accusations that the kingdom is “sportswashing” its international reputation. Saudi government officials say it is part of an ambitious overhaul of the economy, which they are seeking to diversify beyond the oil sector while attracting tourism and investment.
“After the World Cup there’s definitely been a sense of bullishness to invest in global sports,” a person familiar with the PIF’s strategy said.
“It was driven by the fact that Qatar did it so well, and Saudi Arabia’s performance in the World Cup. There’s been a noticeable sea change in how they look at global sports.”
Simon Chadwick, professor of sport and geopolitical economy at Skema Business School in Paris, said Saudi Arabia’s push into sport was in some ways “nothing new”, drawing comparisons with previous investments by Qatar and Abu Dhabi.
However, he added that the “scale and speed” of Riyadh’s
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